Optimal Enhancement and Lifetime of Software Systems: A Control Theoretic Analysis

Production and Operations Management, Forthcoming

40 Pages Posted: 13 Aug 2009 Last revised: 4 Sep 2014

See all articles by Yonghua Ji

Yonghua Ji

University of Alberta - Department of Accounting, Operations & Information Systems

Subodha Kumar

Temple University - Department of Marketing and Supply Chain Management

Vijay Mookerjee

University of Texas at Dallas - Naveen Jindal School of Management

Suresh Sethi

University of Texas at Dallas - Naveen Jindal School of Management

Denny Yeh

Fu-Jen Catholic University

Multiple version iconThere are 2 versions of this paper

Date Written: September 30, 2010

Abstract

We develop an optimal control model to maximize the net value provided by a software system over its useful life. The model determines the initial number of features in the system, the level of dynamic enhancement effort, and the lifetime of the system. The various factors affecting these optimal choices are systems characteristics (e.g., complexity, age, quality), user learning, and process maturity. We also consider that there is a time lag between the addition of a feature and the realization of its benefit to users. The basic model is extended to consider the decision of replacing the existing system by a new one.

Keywords: Software enhancement, lifetime, features, replacement, optimal control theory

JEL Classification: C61

Suggested Citation

Ji, Yonghua and Kumar, Subodha and Mookerjee, Vijay and Sethi, Suresh and Yeh, Denny, Optimal Enhancement and Lifetime of Software Systems: A Control Theoretic Analysis (September 30, 2010). Production and Operations Management, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1447584 or http://dx.doi.org/10.2139/ssrn.1447584

Yonghua Ji

University of Alberta - Department of Accounting, Operations & Information Systems ( email )

Edmonton, Alberta T6G 2R6
Canada

Subodha Kumar (Contact Author)

Temple University - Department of Marketing and Supply Chain Management ( email )

Philadelphia, PA 19122
United States

Vijay Mookerjee

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

Suresh Sethi

University of Texas at Dallas - Naveen Jindal School of Management ( email )

800 W. Campbell Road, SM30
Richardson, TX 75080-3021
United States

Denny Yeh

Fu-Jen Catholic University ( email )

510, Zhongzheng Rd.
Xinzhuang Dist.
New Taipei County
Taiwan

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